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VAT Accountability demanded by Bahamians, State Minister slammed over speech at PLP Convention
Nassau, Bahamas, January 31, 2017 – It sounded rhythmic and it did rouse the party base during the recent PLP convention but now Bahamians are blasting the State Minister for finance for making hyped up claims which many believe are simply untrue.
That’s where the VAT money went was the recurrent chorus by Michael Halkitis on opening night of the Progressive Liberal Party’s Convention but Opposition challenges, fact checking and media interviews do not bear those claims out and challenged the Minister firmly on his now controversial speech.
VAT was introduced in 2015 with tremendous national push back, still it passed into law that 7.5% would be charged on most goods and services.
The tax far exceeded expectations and reportedly raised around a billion dollars, with some $850 million said to have been collected. The question was a lingering one, where did the money from VAT go and so Minister Halkitis’ use of the PLP podium to make the announcement was a sound decision, thousands would be watching.
And they were, among them FNM Chairman, Sidney Collie who is now calling on the PLP Government to tell Bahamians the truth. Collie is joined by the Democratic National Alliance and Greg Moss, the MP for Marco City who disagree with pronouncements by Mr. Halkitis. In a media statement Collie said Bahamians will not believe the rhetoric and that Bahamians reject the new explanation that VAT monies did not go to pay off debt, but to fund projects. In a radio talk show, Minister Halkitis was taken to task for the breakdown of the monies to projects.
The PLP Administration in this presentation by the State Minister also said it provided $12 million for the COB to University of The Bahamas transition and they have doubled scholarship funded from $7.73 million to $16.3 million. Another $150 million to the National Health Insurance plan, $100 million to Bahamasair for a new fleet of aircraft and $232 million on border and marine resources protection.
However, when asked this week about spending on all of the above Mr. Halkitis had to give a different version of events. The State Minister for Finance instead explained that VAT money was used to help secure the loan for Bahamasair new planes and needs for improved border security and that some of the VAT money has been earmarked for assistance with NHI – not yet spent as he said during convention. Halkitis defended that he did not believe he misrepresented the facts in his presentation.
Still, those criticizing his speech express that they are more interested in hard facts, truths and evidence on the billion dollar VAT spending than they are with semantics. Branville McCartney of the DNA called for the Central Revenue Agency which was supposed to be established as an oversight body for the Value Added Tax. McCartney said the PLP is guilty of wasteful spending and went 100 times over budget and now the Party is using VAT money to make up for errors at tax payers’ expense.
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